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AGENDA OF COMMISSION MEETING

Administration

1. Approval of the Minutes of the Commission Meetings Held on May 21, 2013, and June 4, 2013 (Staff: Joy Irving)

On December 17, 2012, the Commission received an application by Black Hills Power, Inc. (BHP) for approval to increase rates for electric service to customers in its South Dakota service territory by approximately $13.7 million annually or approximately 9.94% based on BHP's test year ending June 30, 2012. The Company states a typical residential electric customer using 650 kWh per month would see an increase of $7.11 per month. The proposed changes may potentially affect approximately 65,000 customers in BHP's South Dakota service territory. On May 23, 2013, Black Hills Power filed a Joint Motion for Approval of Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority, Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority, Supplemental Motion for Approval of Settlement Agreement (SDSTA), Joint Motion for Approval of Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel, Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel, and Supplemental Motion for Approval of Settlement Agreement (Dakota Panel).

TODAY, shall the Commission grant, in whole or in part, the Joint Motion for Approval of Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority? OR, shall the Commission grant, in whole or in part, the Supplemental Motion for Approval of Settlement Agreement (SDSTA)? AND, shall the Commission grant, in whole or in part, the Joint Motion for Approval of Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel? OR, shall the Commission grant, in whole or in part, the Supplemental Motion for Approval of Settlement Agreement (Dakota Panel)? OR, how shall the Commission proceed?

On December 17, 2012, the Commission received an application by Black Hills Power, Inc. (BHP) pursuant to SDCL 49-34A-73 for authority to implement a phase in rate increase for its South Dakota customers relating to the construction financing costs of Cheyenne Prairie Generating Station (CPGS). CPGS is a natural gas-fired power plant that will be constructed in Cheyenne, Wyoming, that will provide 55 MW of generation to BHP. The Company states a typical residential electric customer using an average of 650 kWh per month would see an increase of $0.88 per month for the first quarterly filing. Over the term of the phase in plan, the typical residential customer's bill will increase starting at around 1% and ending up at the completion of the phase in plan at approximately 4.5%. On May 23, 2013, Black Hills Power filed a Joint Motion for Approval of Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority, Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority, Supplemental Motion for Approval of Settlement Agreement (SDSTA), Joint Motion for Approval of Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel, Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel, and Supplemental Motion for Approval of Settlement Agreement (Dakota Panel).

TODAY, shall the Commission grant, in whole or in part, the Joint Motion for Approval of Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority? OR, shall the Commission grant, in whole or in part, the Supplemental Motion for Approval of Settlement Agreement (SDSTA)? AND, shall the Commission grant, in whole or in part, the Joint Motion for Approval of Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel? OR, shall the Commission grant, in whole or in part, the Supplemental Motion for Approval of Settlement Agreement (Dakota Panel)? OR, how shall the Commission proceed?

On February 27, 2013, the Commission received a petition from Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2013 Transmission Cost Recovery (TCR) Rider, Adjustment Factor, and Tracker Account report. For 2013, Xcel proposes to begin recovery of the South Dakota jurisdictional portion of the revenue requirements related to twenty-two transmission projects located throughout its service territory. Xcel proposes to recover $2.45 million associated with these projects for the 2013 calendar year. Included in the $2.45 million figure is the 2012 unrecovered balance of $227,462. The total of the transmission investment costs and the tracker balance results in an average bill impact of a $0.46 per month for a typical residential electric customer using 750 kWh per month. This is a decrease of $1.82 per month from the current TCR Rider recovery. The Company proposes to implement a rate of $0.000612 per kWh applied to all energy billed to each customer class beginning April 1, 2013, through December 2013. This represents a decrease of $0.002426 from the existing rate of $0.003038 per kWh. On June 10, 2013, Xcel filed a supplement to its 2013 TCR Petition requesting the Commission approve the TCR rate to be set at $0.00 for the remainder of 2013.

On April 30, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Cam-Wal Electric Cooperative, Inc. and Dakota Energy Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

On April 30, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Cam-Wal Electric Cooperative, Inc. and FEM Electric Association, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

On April 30, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Cam-Wal Electric Cooperative, Inc. and Oahe Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

On April 30, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between FEM Electric Association, Inc. and Dakota Energy Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

On April 30, 2013, the Commission received a request from Otter Tail Power Company (Otter Tail) for approval of its updated Customer Information Brochure, pursuant to ARSD 20:10:16:02. On June 3, 2013, Otter Tail filed a revised brochure.
TODAY, shall the Commission grant approval of Otter Tail Power Company's revised customer information booklet?

On May 1, 2013, Otter Tail Power Company (Otter Tail) filed its 2012 Energy Efficiency Plan (EEP) results. With the report, Otter Tail requested approval of the calculation of their 2012 financial incentive as well as an increase in the Energy Efficiency Adjustment Rider. Otter Tail requested an effective date of July 1, 2013. On June 4, 2013, Otter Tail filed its responses to staff data requests.

On May 2, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Dakota Energy Cooperative, Inc. and Oahe Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

On May 16, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Oahe Electric Cooperative, Inc. and NorthWestern Corporation dba NorthWestern Energy. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

On July 27, 2001, Qwest Corporation (Qwest) filed a petition for the purpose of determining Qwest's forward looking costs to be used in setting the prices for the elements and services contained in Qwest's Statement of Generally Available Terms (SGAT). Qwest is not generally seeking changes to those prices already established by this Commission in the AT&T Arbitration (TC96-184). Qwest recommends that this Commission declare those previously established prices to be Qwest's permanent TELRIC-based wholesale prices. For those services that were not addressed in previous pricing decisions of this Commission, Qwest offers its cost studies and supporting materials in support of the prices depicted in its filing. On May 8, 2006, Qwest filed a letter stating its intent to withdraw the cost docket. On May 29, 2013, an executed Stipulation of Dismissal was filed.

On March 7, 2013, the Commission received a petition by Zayo Group, LLC (Zayo) for approval of its Initial Switched Access Services Tariff. Zayo also seeks waiver of ARSD 20:10:29:10, 20:10:29:12, and 20:10:29:16 in order for Zayo to mirror its terminating intrastate access rates with its terminating interstate access rates pursuant to the Federal Communications Commission's Report and Order and Further Notice of Proposed Rulemaking, in Docket Nos. WC Docket No. 10-90, et al., FCC 11-161.

TODAY, shall the Commission approve the Access Services Tariff? AND shall the Commission grant the waivers as requested?

In orders released by the Federal Communications Commission's (FCC's) Wireline Competition Bureau, the FCC has added data specifications for the collection of study area boundary data to be used as part of the implementation of certain universal service reforms adopted by the FCC. In its most recent order on this issue, the FCC has concluded that state commissions may certify to the accuracy of study area boundary data and submit it on behalf of incumbent local exchange carriers operating in their states. At its March 26, 2013, meeting, the Commission considered how to proceed regarding the issue of whether the Commission should submit and certify the study area boundary data. The Commission unanimously voted to open a docket to consider these issues and set April 3, 2013, as the deadline for written comments. The Commission further found that it would make its decision at its April 9, 2013, meeting. At its April 9, 2013, meeting, the Commission unanimously voted to provide certification of study area boundary data to the FCC. On June 7, 2013, Commission Staff filed a letter stating that the parties had managed to informally resolve all but three unserved areas. These unserved areas were detailed in Staff's Appendix A. Staff also submitted a zip file containing the shapefiles of all of the exchanges within the state.

TODAY, shall the Commission certify the maps submitted by Staff? AND, how shall the Commission proceed with respect to unserved areas?

On April 16, 2013, Consolidated Telecom Inc., d/b/a Secured Technologies Inc., (Consolidated) filed an application for a certificate of authority to provide interexchange services in South Dakota for the purpose of providing Alternative Operator Services. Consolidated intends to provide automated, operator assisted calling services to inmates of correctional institutions and other confinement facilities throughout the State of South Dakota. Due to the unique nature of providing Alternate Operator Services to inmates, Consolidated also requests a waiver of ARSD 20:10:24:05 (3), (5), (6), and the last paragraph of ARSD 20:10:24:05.

TODAY, shall the Commission grant a Certificate of Authority to Consolidated Telecom, Inc. d/b/a Secured Technologies, Inc.? AND shall the Commission grant the waivers as requested?

Items for Commission Discussion

Announcements

The next regularly scheduled commission meeting will be Tuesday, July 2, 2013, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, S.D.

Commissioners and staff will meet with representatives of Xcel Energy on Tuesday, July 2, 2013, at 1 p.m. CDT in Room 413 at the State Capitol Building, Pierre, S.D. The agenda is to discuss updates about the underground fire on Xcel's facilities in Sioux Falls, S.D., on Jan. 25, 2013, and the company's Sherburne County Generating Station.

The PUC offices will be closed Thursday, July 4, 2013, in observance of Independence Day.